ExxonMobil Profits Up Despite Lower Oil And Gas Output

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New York (AFP) — U.S. oil giant ExxonMobil Thursday reported higher second-quarter profits despite pumping less oil and gas than it did a year ago.

Exxon, the biggest U.S. oil company and the second-largest U.S. company in terms of market capitalization after Apple, said earnings came in at $8.8 billion, up 28 percent from the year-ago level.

Production of oil and gas declined 5.7 percent, but profitability in the exploration and production segment rose 25 percent to $7.9 billion. Exxon said “higher realizations” for its output added $580 million.

Lower oil and gas volumes is often seen as a red flag in the oil business. But Exxon has emphasized that it will not sacrifice profitability for higher output, meaning it will not produce oilfields unless they are highly profitable.